The United States is gearing up to impose restrictions on certain imports from Canada starting on Tuesday, marking the latest development in an ongoing trade dispute that has already resulted in significant tariffs on goods from both countries.

The banned items, which will take effect at 12:01 a.m. ET, include various products such as alcoholic beverages, dairy byproducts, molasses, and motorcycles. While these restrictions will deal another blow to businesses operating in these sectors, they are not anticipated to have a widespread impact on the overall national economy, according to a senior White House official and experts in international trade. The primary aim of these bans is seen as a tactic to dissuade further retaliatory actions from Canada and other countries affected by the economic policies of the Trump administration.

Barry Appleton, co-director of the Centre for International Law at the New York Law School, highlighted that bans are particularly challenging to reverse compared to tariffs, signaling a shift in the dynamics of trade relations with Canada.

Derek Holt, vice-president at Scotiabank, analyzed that the bans targeting alcohol, dairy, and motorcycles are expected to have minimal effects due to the relatively low volume of these imports from Canada to the U.S. For instance, alcohol exports to the U.S. totaled around $1.2 billion last year, with spirits being a significant portion of the trade.

Regarding alcohol, the ban encompasses a wide range of products such as beer, wine, spirits, and other alcoholic beverages. Canadian producers, like Spirits Canada, are concerned about the impact on their exports to the U.S., especially given that a substantial portion of spirits produced in Canada is sold south of the border.

The dairy import ban primarily focuses on whey products, a byproduct of cheese-making used for protein enrichment. Although Canada is a significant supplier of whey to the U.S., the ban is expected to affect a small fraction of the total imports. Businesses in this sector are grappling with the trade disruptions, causing challenges in navigating the market.

The ban on molasses products is a response to concerns raised by American sugar producers about foreign competition undercutting their businesses. Similarly, the restriction on motorcycles, although limited in its national impact, could have repercussions in regions like Quebec, where certain American motorcycle brands were included in Canada’s counter-tariffs.

Overall, the new import restrictions are viewed as symbolic actions by the U.S. administration and are not expected to have substantial economic implications. The ongoing trade uncertainties and disruptions are posing greater challenges for businesses affected by these bans.